Reading you energy bill both gas and electricity is not too hard armed with explanations as to what everything means. The advantage of reading and understanding your bills properly are:
1. If you get over charged you will know about it and comparing your previous bills gives you a pattern of usage.
2. If you wish to reduce your energy bills you can tell if its working or not. Things like installing an energy saving heat pump for your hot water service or adding solar panels. Even reducing your energy usage in peak times.
Average Cost Per Day
The average daily cost is essentially the daily average of your energy expenses. This figure encompasses both the average energy consumed each day and the daily service charge associated with maintaining the connection to your property.
Average Daily Use
The term “average daily usage” refers to your typical daily energy consumption. This is quantified in terms of kilowatt-hours (kWh) for electricity and megajoules (MJ) for gas. A kilowatt (kW) represents 1,000 watts of electrical power.
Kilowhat??
A kilowatt-hour (kWh) is the unit of measurement for electricity use at your home. It represents the amount of power in kilowatts used over the course of an hour. For instance, a 1,000-watt appliance running for one hour consumes 1 kWh of electricity.
Megajoules
For gas, the unit of measurement is the megajoule (MJ), which is equivalent to one million joules of energy.
Charges
The cost of electricity is often calculated in cents per kilowatt-hour (c/kWh). For example, if the rate is 22.56 cents per kWh and you use 20 kWh daily, your daily cost would be $4.51. (20 x 22.56 cents)
Peak and off-peak electricity pricing applies exclusively to customers enrolled in a ‘time of use’ or ‘flexible pricing’ plan, which requires the installation of a smart meter at the property.
A single rate tariff charges a consistent rate for electricity at any time of day, although energy suppliers might still label these costs as ‘peak usage’. This label is particularly common if there is a controlled load involved, such as paying a lower rate for the electricity used by a hot water heater or pool pump.
Conversely, a time of use tariff varies the electricity prices based on the time it is consumed. Under this plan, the ‘peak usage’ portion of the bill corresponds to the amount of energy utilized during the peak hours of electricity demand.
Peak – Off Peak
If you are on a time-of-use electricity plan, you will face varying charges based on the time of day. In Victoria, residential customers may experience off-peak hours between 10 p.m. and 7 a.m. on weekdays and all day on weekends.
Peak Times
During periods of high demand, known as ‘peak’ times, charges are higher. Peak periods often occur when there is a general increase in electricity usage, such as early evenings when households are active.
Off Peak
Conversely, ‘off-peak’ times, typically during midday when usage is lower as people are at work or school, have reduced rates.
In Victoria, residential customers may experience off-peak hours between 10 p.m. and 7 a.m. on weekdays and all day on weekends.
Additionally, there is a consistent ‘daily supply charge,’ a fixed fee that covers the costs of the infrastructure needed to deliver energy to your property, regardless of your actual energy consumption.
Electricity Tariffs
Electricity tariffs, the rates you pay for electricity, generally come in two types:
– Flat rate: This is a constant rate charged for electricity usage at any time of day or night
– Time-of-use: This rate varies depending on the time of electricity use. It involves higher charges during peak hours and lower rates during off-peak hours, incentivising energy usage when demand is low.
You don’t need a Uni degree to follow your bills just pay attention to the amount of gas or electricity your using, compare this monthly and see how you can reduce your costs overall.
Also call Wayne if you’re thinking of reducing your hot water bill by up to 80% with a heat pump hot water service and watch your monthly hot water charges drop significantly.
Below you will see examples of gas and electricity that should be similar to yours. Go to your energy suppliers website for a more accurate explanation of your specific bill.
